Thursday, December 9

Australia wants to become a leader in the cryptocurrency industry

With Bitcoin reaching all audiences, it is necessary for countries to establish clear laws on cryptocurrencies as the old ones are already obsolete and may have different interpretations.

That said, Australia appears to be taking the lead as its parliament has launched a report containing a list of recommendations on measures related to activities of the cryptocurrency sector.

This is an important step for both entrepreneurs and users, as regulatory clarity can open the door to the development and use of cryptocurrencies and related services.

The recommendations

The first point addressed by the document is related to exchanges, which are currently the most important companies for cryptocurrencies worldwide, as they allow for asset conversions, both for purchase and sale.

Following the list, the document suggests that the government obtain assistance from industry experts to determine the best way to place digital assets in different categories. Since there are so many use cases for different cryptocurrencies and tokens, and sometimes more than one use for the same asset, this should help the industry as a whole.

A point that draws a lot of attention is the mention of Decentralized Autonomous Organizations (DAOs). Although they are not yet so popular in the market, the committee already seems ready for this possible next move which, as the name suggests, allows organizations to work in a decentralized way.

Other recommendations involve paying taxes, of course, asking for greater clarity on capital gains taxation, as well as giving miners a 10% discount if they use renewable energy sources to carry out the activity.

Finally, the document shows the need to improve the provision of services by banks since today they close exchanges and users accounts for no specific reason. The report cites the case of a P2P that, being denied by 90 banks, cannot leverage its business.

industry leader

China’s ban has proved that countries with open arms for cryptocurrencies will benefit. With the migration of miners, the US became the country with the greatest Bitcoin mining power, and this could have a strong impact on the industry, as infrastructure needed to be created to house them, not to mention the taxes collected.

According to Australian senator Andrew Bragg, being one of the pioneer countries in the creation of laws related to the cryptocurrency sector can make Australia not only attract business to its country but also improve the lives of its citizens.

“Australia can be a leader in digital assets. This means Australians can access new options and lower prices. […] This will generate investment and jobs in Australia.”

Given that cryptocurrencies are already worth more than Apple, it is important to note that this value was created without any kind of government help, on the contrary, the companies and services that helped them reach this value have always acted in the shadows of the laws as the current ones are outdated.

With a clear path, through clear laws, the sector can still grow much more, allowing people to create and enjoy new and better services.